CryptoQuant: The BTC miner surrender index is approaching the bottom level after FTX's crash, which may indicate that the market has hit rock bottom

The report from CryptoQuant suggests that the BTC miner capitulation index is approaching the market bottom level after FTX's crash in 2022, possibly indicating a bottoming out of the BTC market. Miner capitulation refers to some miners reducing operations or selling their mined BTC to sustain livelihoods or hedge risks. Over the past month, the price of BTC has dropped from $68,791 to $59,603 with multiple signs of capitulation appearing. One such sign is a significant drop in BTC computing power by 7.7% to a four-month low of 576 EH/s.

CryptoQuant analysts pointed out that this situation is similar to when the price of BTC hit a bottom at $15,500 at the end of 2022 and then rose more than 300% over the next 15 months. Moreover, since halving occurred, miners' income has significantly decreased with daily earnings down by 63%, dropping from $79 million on March 6th to currently $29 million; transaction fee income ratio fell to its lowest since April 8th at just 3.2%. Miners are forced to use reserves for profit as average daily miner outflows have reached their highest point since May21st suggesting they may be selling off their stored up BTC.

Sales by miners, whales and several national governments collectively led to a fall in Bitcoin prices which dropped on July5th reaching a four-month low at $53,499 per bitcoin. The current hash rate (miner profitability per unit computational capacity) stands at $.049 per EH/s nearing its historical low point on May1st when it was $.045.

Financial services firm Cantor Fitzgerald previously reported that if Bitcoin's market price falls below $40k some of world’s largest mining companies would be forced into surrender highlighting difficulties within mining industry.